Tag - PRLS

A balance sheet stuffed with cash and a left-for-dead stock price make Peerless Systems Corp. (Nasdaq:PRLS) a microcap tech play worth investigating.

The past two years have not been kind to shareholders of the El Segundo, Calif.-based company. At a recent price of $1.93 a share, and a market cap under $34 million, Peerless has seen its stock price shrivel by nearly 75% since 2006. Founded over 25 years ago, Peerless enjoyed a solid niche for many years providing software-based imaging and networking technologies for providers of printers, copiers and multifunction products. However, in recent years, Peerless’ customers, such as Konica Minolta Holdings, Inc., Kyocera-Mita Corporation and Ricoh Company, Ltd., have increasingly developed more technology in-house, putting pressure on Peerless’ margins. Understandably, investors dumped the stock as Peerless’ prospects dimmed.

Last year, activist investor Timothy Brog tried to shake things up at Peerless. His proxy contest resulted in a settlement last June in which Peerless agreed to add Brog to the board, as well as name two new independent directors. With the resignation last week of the lone remaining long-time director on the Peerless board, all of its directors have joined the board in only the past year or so. Peerless CEO Richard Roll took the top spot in December 2006. In January of this year, Roll announced an agreement to sell substantially all of Peerless’ intellectual property and other assets to major customer Kyocera-Mita for $37 million in cash. As part of the deal, Kyocera-Mita issued to Peerless a non-exclusive, worldwide, perpetual and royalty-free license on the transferred technologies. At the start of this month, the transaction officially closed...

Shares of Peerless Systems Corp. (Nasdaq: PRLS) are rocketing in pre-market after the provider of imaging and networking technologies said it will sell substantially all of its intellectual property and other assets to long-time customer Kyocera Mita Corp. for $37 million in cash.

The intellectual property and assets are associated with Peerless' digital imaging software, and include all of Peerless' patents, as well as specific fixed assets. 

Under the terms of the agreement, Kyocera Mita will issue Peerless a non-exclusive, worldwide, perpetual and royalty-free license on the transferred technologies, which will enable Peerless to continue serving current and prospective OEM customers, as well as develop new intellectual property to use in future products and services.

Shares of Peerless Systems (PRLS) bolted 51.68%, or $1.23, to $3.61 in pre-market. Shares of Peerless Systems have been trading in the range of $1.69 to $3.70 for the past 52 weeks.

Provider of advanced imaging and networking technologies Peerless Systems Corp. (Nasdaq: PRLS) reported after the closing bell that it swung to a profit in its 2008 fiscal second quarter.

For the three months ended July 31, the El Segundo, Calif.-based firm recorded net income of $1.2 million, or $0.07 per share, compared with a net loss of $0.3 million, or $0.02 per share, in the second quarter last year. The company reported a net loss of $0.8 million, or $0.05 per basic share, in this year's first quarter.

Second quarter revenues were $6.9 million, compared with $7.9 million in the second quarter a year ago.

Shares of Peerless edged up 0.11%, or $0.002, to $2.16 in after-hours trading.

The following small-cap companies were making news in after-hours trading Thursday:

Peerless Systems Corporation (Nasdaq: PRLS) reported a net loss for the first quarter ended April 30 of $0.8 million, or $0.05 per basic share, compared with one analyst's estimate for a loss of $0.01. In last year's first quarter, the company had net income of $2.0 million, or $0.11 per diluted share. The El Segundo-based technology provider said revenue was $4.7 million, compared with the analyst's estimate for $7.1 million and with $8.8 million in the first quarter of 2006. In a release, management said it was holding to previous forecasts for results over the rest of the year. Shares of Peerless were down $0.38, or 13%, at $2.88. 

Mountain View, Calif.-based Ditech Networks, Inc. (Nasdaq: DITC) said revenues for the fourth quarter ended April 30 were $19.2 million, down from $20.0 million in the same quarter the previous year and below analysts' expectations for $20.8 million. Diluted net income per share was $0.02, compared to expectations for $0.07 and to $0.07 in the fourth quarter of fiscal 2006. Shares of the supplier of voice processing equipment were lower after hours, trading at $8.00, down down $0.37, or 4.4%.

Verigy LTD (Nasdaq: VRGY) exceeded its guidance for revenue in the second quarter ended April 30, and shares were sharply higher in after hours trading. The Cupertino, Calif.-based semiconductor test company said revenues were $183 million, up 11% from the prior quarter and above analysts' expectations for $176.23 million. In the second quarter of fiscal 2006, revenues were $192 million. Net income for the quarter was approximately $0.36 per diluted share, matching expectations for $0.36 and ahead of the $0.22 per share in the prior quarter. The company lost $0.22 per share in the same quarter the previous year. Verigy was 10% higher in after-hours trading, up $2.49 at $27.12.